How Smart Homes Could Benefit from Energy Management Systems
As smart technology and connected devices increase in demand, so does the importance of managing their energy use and software. The new ENERGY STAR Smart Home Energy Management Systems (SHEMS) Program establishes standards in this arena. For instance, many home buyers want security cameras, video doorbells and programmable thermostats for security and an increased sense of control. These features can increase the energy load in the home, so the Environmental Protection Agency (EPA) developed a standard for the energy management of all these systems.
Falling under the robust ENERGY STAR brand, SHEMS is a package of other ENERGY STAR-certified devices and services.
The goal of the program is to ensure that devices are running efficiently and only when needed. In other words, it’s a smart-home service platform and a combination of smart-home devices that connect and subsequently:
- Sense occupancy in the home;
- Schedule and automate energy based on occupancy;
- Report that energy to users; and
- Control devices based on time-of-use electric rates.
To be considered a package, devices must include at least one ENERGY STAR-certified smart thermostat, at least two connected lighting devices (such as an ENERGY STAR bulb or fixture), and one plug load control/management device (home energy monitor, smart plug, etc.). To optimize control of other devices, encouraged (but optional) technologies include refrigerators, clothes washers and dryers, pool pumps, air conditioners and other ENERGY STAR-certified devices.
Version 1 of the SHEMS specification was finalized in fall 2019; performance metrics and the first certified SHEMS packages are expected to be rolled out later in 2020. SHEMS becomes an ENERGY STAR-certified product when many devices are bundled and combined with various services that monitor and control energy use in the home, communicate with the cloud, and interact with the grid.
A program like this could be vital for saving consumers money through smart energy management, particularly as residents become more educated about ongoing home maintenance costs, the total cost of homeownership, and have the desire to keep utility bills low. To learn more about becoming a partner and to view webinars based on your company’s services, visit ENERGY STAR's website.
For more information about NAHB’s sustainable and green building programs, visit nahb.org. To stay current on the high-performance residential building sector, follow NAHB’s Sustainability and Green Building team on Twitter.
Latest from NAHBNow
Feb 26, 2026
2026 National Housing Center Award Recipients AnnouncedThe National Housing Center Board of Governors has announced the recipients of the 2026 National Housing Center Awards. The induction and award ceremonies will take place during the 2026 Spring Leadership Meeting at the National Housing Center in Washington, D.C.
Feb 25, 2026
House Approves NAHB-Supported Energy Codes BillThe House today approved the Homeowner Energy Freedom Act, NAHB-supported legislation that would repeal burdensome provisions from the Inflation Reduction Act, including a provision that provides states $1 billion to incentivize the adoption of the 2021 International Energy Conservation Code (IECC).
Latest Economic News
Feb 25, 2026
Housing’s Share of GDP Declined Further at the End of 2025Housing’s share of the economy was 16.0% in the fourth quarter of 2025, according to the latest estimates of GDP produced by the Bureau of Economic Analysis. This share is down from 16.1% in the third quarter and is also lower than 16.3% as registered just one year ago.
Feb 24, 2026
Young Adult Headship Rates in 2024: Cyclical Slip or New Equilibrium?Reversing the post-pandemic rebound, the headship rates among young adults (the share of the population heading their own households) declined in 2024, according to NAHB’s analysis of the American Community Survey (ACS) data.
Feb 23, 2026
A 25-Basis-Point Decline in the Mortgage Rate Prices-In 1.42 Million HouseholdsHousing affordability remains a critical challenge nationwide, and mortgage rates continue to play a central role in shaping homebuying power. Although rates have declined from the recent peak of about 7.6% in 2023 to around 6.01% as of February 19,2026, they remain elevated relative to typical levels in the 2010s.